Problem Set 9 (PS9)

 Principles of Macroeconomics (Eco 200-800) SUNY-Oswego Solutions will be posted by Fri., May 5, 2000 Ranjit Dighe

I. BY THE BOOK

A. Case & Fair (5th edition), Chapter 20: #4
B. Case & Fair, Chapter 21: #1, 3, 4

II. GERMANY AND JAPAN, MADE ME FEEL SO SMALL

 Date and currency Price (US \$ per unit of foreign currency) Price (foreign currency per US \$) November 1997 ..... Germany (marks) \$0.5948 ______________ ..... Japan (yen) __________ 135.25 November 1994 ..... Germany (marks) __________ 2.9886 ..... Japan (yen) \$0.0041098 ______________

A. Fill in the four blank spaces above. (Hint: One word -- reciprocal.)

B. 1. A Mitsubishi VCR costs 20,000 yen in Japan. How much would this TV cost in U.S. dollars in November 1997? In November 1994?
B. 2. A Dell personal computer (American) costs \$1500. How much would this computer cost in Japanese yen in November 1997? In November 1994?
B. 3. A bottle of Schneider Riesling white wine costs 30 marks in Germany. How much would it cost in U.S. dollars in November 1997? In November 1994?